NMBZ Holdings seeks to operationalise new subsidiaries
FINANCIAL services group, NMBZ Holdings Limited says its diversification drive will intensify this year as it seeks to operationalise new subsidiaries.
The banking institution now has a Property Development Company and Microfinance Division.
According to Group Chief Executive Officer, Mr Gerald Gore, a broadened group structure gives a vantage position to participate in multiple sectors and maximise on pockets of opportunities that exist in the different spaces.
“In pursuit of our exponential growth aspiration, the Group’s diversification thrust gathered momentum. The Group now has a new subsidiary to add to the bank, namely the Property Development Company,” said Mr Gore in consolidated financial statements for the year ended 31 December.
NMB Bank
He noted that the banking division also diversified its operations as it set up a microfinance division with the aim of providing more focused services to individuals and micro businesses.
Added to that a technology services division was also set up and is in various discussions with a number of banks in the region with an aim of become their technology partner to drive their digital transformation agendas.
“This will be an additional source of foreign currency earnings for the Group.
“The new subsidiary and divisions have opened up new markets for the Group and have a clear vision on how to establish themselves as formidable players in their domains.
Mr Gore said capital allocation was key and the new businesses were capitalised organically, noting that all the Group’s subsidiaries are adequately capitalised and capacitated to pursue their strategic goals.
Commenting on the performance, he said 2022 presented great opportunities which the Group took advantage of to deliver strong operational and financial performance.
He said the Group achieved a total comprehensive income of ZWL12,5 billion, which was a 62 percent increase compared to ZWL7,7 billion for the previous year.
“There continues to be pressure on operating costs which have increased by 57 percent from ZWL12,1 billion for the year ended 31 December 2021 to ZWL 19 billion for the current year.”
The banking subsidiary had two new offshore funding opportunities in which it signed two credit lines during the year,
European Investment Bank EUR12,5 million and Trade and Development Bank line of US$10 million.
“This saw the Bank’s loan book increasing by 40 percent to end the year at ZWL46,3 billion compared to ZWL42,5 billion in 2021,” noted the CEO.
The banking unit continued to be strongly focused on supporting exports growth, agricultural production, infrastructure development and productive sector operations.
He said the institution saw impressive contributions on deposits and loans from new business underwritten adding that lending growth was above set targets.
“The exporters’ book continues to grow through various partnerships created during the financial period, in particular the foreign credit lines.
“We deployed part of our lines of credit funding to support the horticulture sector. We are also leveraging the strength in Food and Agriculture of one of our indirect shareholders, Rabobank to support our farming and agriculture customers.”-chronice.cl.zw
